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CostHelper > Home and Garden  > Electrical, HVAC & Energy Efficiency > Propane

Propane Cost

How Much Does Propane Cost?

low cost2005-2010 Average: $1.73-$2.66 a gallonaverage cost2011-2012 Heating Season Average: $2.74-$2.88 a gallonhigh costAverage Winter Total: $2,000-$5,500
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Propane is a gas that becomes liquid under moderate pressure. As a heating fuel, propane is stored in a pressurized tank and measured by the gallon. When released into supply lines, the propane vaporizes back into a gas. Propane is the most common type of liquid petroleum gas, which is also called liquefied petroleum gas, LPG, GPL, LP Gas or autogas.

Typical costs:

  • During the heating season (October to March), the federal Energy Information Administration publishes weekly average propane prices[1] in the United States. In October 2013, the average residential price was $2.37. From October 2012 to March 2013, the average weekly price varied from from $2.195-$2.319, or about $880-$1,050 to fill a 500-gallon tank; between 2005 and 2010, prices averaged $1.73-$2.66 a gallon, or $690-$1,070 to fill a 500-gallon tank. With three to five fill-ups per six-month season, total winter costs could be $2,000-$5,500.
  • Propane is a byproduct of oil and gas production, and in the past propane prices rose and fell in tandem with the cost of crude oil. However, more than half the propane produced in the United States now comes from liquids brought to the surface by drilling for natural gas in shale rock, so propane prices are currently following the more stable costs of natural gas.
Related articles: Propane Tank, Heating Oil, Heating Oil Tank

What should be included:
  • Residential storage tanks are typically 120, 250, 500 or 1,000 gallons, either above-ground or underground. For safety, propane tanks should only be filled to about 80% of total capacity.
  • Propane is sold by private companies. Some homeowners own their propane tank, while others rent or lease it from the propane company. Homeowners who own their tank can shop around for the best price for each delivery, but will have to pay any increases in the market price; they're also responsible for maintaining the tank.
  • With a pre-buy or fixed-price arrangement, consumers sign a contract in late summer or early fall for as much propane as they estimate they'll need for the entire winter. A contract can be a good deal if prices rise after the contract is signed; this happens most years because demand is higher in the winter, but prices can be unpredictable.
Additional costs:
  • Some companies charge separate fees of $5-$100 or more per item for delivery, hazmat safety, administrative costs, setting up payment plans, invoicing, fuel surcharges or other services. For example, in September 2012 Amerigas[2] charged a $9.59 HazMat & Safety compliance fee and $99 for setting up a fixed-price, 12-month payment plan.
  • With a company-owned propane tank, often the company requires that a certain amount of propane be used each heating season, and may charge a fee (typically $50-$100) if usage drops below the minimum.
  • Many propane suppliers offer new-customer incentives varying from a specific amount of free propane (typically 50-100 gallons) to a discounted price (roughly 5 50 cents per gallon, although it varies significantly). Be aware of the difference between introductory pricing and the standard rate after the "new customer" period ends.
  • Some companies offer discounts of 5 cents to 15 cents per gallon if the account is paid promptly (such as within seven days of delivery) or for automatic-fill customers. Companies also offer a bonus (50-100 gallons free or a $50-$75 credit) for referring someone who becomes a leased tank customer.
  • Work with neighbors to negotiate a group rate for deliveries, or look for an established local fuel cooperative like The Sacandaga Group[3] in New York or Our Town Energy Alliance[4] in New Hampshire. For a moderate annual membership fee (typically $20-$30), these buying groups negotiate a discounted rate; this varies considerably but can be less than the market rate by roughly 10 cents to $1 or more a gallon.
  • The US Department of Health & Human Services provides information about the Low Income Home Energy Assistance Program (LIHEAP[5] ), helping helps low-income households meet urgent home energy needs. LIHEAP is funded by the federal government but handled by each state[6] , so eligibility rules and assistance varies.
Shopping for propane:
  • Most companies require that new customers file a credit application before propane is delivered, unless the delivery is paid for with cash, according to the Oklahoma LP Gas Research, Marketing and Safety Commission[7] .
  • Large, national propane chains include AmeriGas[8] , Ferrell Gas[9] and Suburban Propane[10] .
  • The National Propane Gas Association provides referrals to propane retailers[11] by zip code.
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What People Are Paying - Recent Comments

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I think I did okay?
Amount: $1,800.00
Posted by: Big Thick Cat Daddy in Big Rapids, MI.Posted: July 28th, 2015 12:07PM
Company: Suburban Propane
A couple of weeks ago I purchased almost 1,150 gallons of propane. I have a 1,000 gallon and 500 gallon tanks leased from Suburban. The total was just under $1,800.00 including tax. The price was $149.9 per gallon. I think I did okay.
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removal of propane tank
Amount: $98.10
Posted by: carol slifko in lakewood, PA.Posted: July 27th, 2015 01:07PM
Company: paraco Gas
cost per gallon became excessive compared to other companies in area, canceled service. Paraco came and removed their tank. 30 gallons remained in tank that I expected to be refunded, when I called about the refund I was told the $98.10 was a restocking fee. Do I have any recourse?
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How long does it take to put in 28.3 gal
Amount: $88.97
Posted by: Just me! in vista, CA.Posted: July 21st, 2015 02:07PM
Company: ferrellgas
The hose was hooked to my tank literally for 1 min. They are charging me for 28.3 gallons! How long would it normally take to fill 28.3 gallons? Just wondering!
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please were all disabled
Amount: $800.00
Posted by: bebra carol hulsey in silver creek, GA.Posted: July 18th, 2015 12:07AM
Company: lasiter
My Hisland and are 100% disabled and we can only afford monthly payments. We would pay it off before. 12 months
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Pre-buy for 2015-15 heating season
Amount: $2,268.00
Posted by: Sean Anderson in Methuen, MA.Posted: July 11th, 2015 10:07AM
Company: Ostermans
Just get a pre-buy quote of 1200 gallons for 2015-16 heating season. The per gallon price is $1.89.
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new cumberland pa
Amount: $0.80
Posted by: ouadii loukili in new cumberland, PA.Posted: July 4th, 2015 02:07PM
Company: thrifty propaine
I got 1000 gallons for 1.20 I guess I got the best prize ever ,that first time am using propane and looks like I did good
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Propane pricing W/ 2 propane Company's
Amount: $1,000.00
Posted by: James Koper in Weeki Wachee, FL.Posted: May 22nd, 2015 09:05AM
Company: Suburban / Heritage/Amerigas
Suburban installed my gas lines and brought a 125 gal. Chg.'d me for install as agreed,but the price per Gal.+ the amount didn't match up. I called to cancel and remove.
I called Heritage and they install tank and filled it. Everything was going great until a change in management happened. I called to remove
I got Amerigas, everything was going great until I questioned the price I was paying per gal.! I went from $2.83 to $5.60. I withheld my payments, as I was told they would get a answer. The answer I received was "it was costly to bring propane into te state,that's why it cost so much. " B S "
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Smartpay plan.
Amount: $86.00
Posted by: AngryBill in Parker, AZ.Posted: March 2nd, 2015 01:03PM
Company: Amerigas
The Co. tells me what my monthly cost will be for all yr. But, last two yrs. it goes up last 6 mon. , because they say I am not paying enough monthly. So I have a large balance on my settle-up date. So I raise my monthly smartpay plan and still owe a large settle-up balance! I am living alone now that my wife became an angel last yr.
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Amount: $1,164.75
Posted by: Joa in 28655, NC.Posted: February 7th, 2015 03:02PM
Company: Heritage Propane
My delivery company suggested that I prebuy my propane to avoid higher gas prices in the cold months. So I paid $ 3.32 per gallon for 600 gal in August 2014. Now the average quoted price in NC is $ 2.80 and the NC Department of Natural Resources just posted an excuse for outrageous propane gas prices due to shortages. I guess it is finally time to change suppliers.
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gas man
Amount: $285.00
Posted by: omg in chicopee, MA.Posted: January 8th, 2015 07:01PM
Company: suburban
Delivery guy dropped pants and beefed in my tank and got bill for 285. That stinks
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My mother who is now turminal
Amount: $600.00
Posted by: Sunshine sue in Cameron, OK.Posted: December 28th, 2014 09:12AM
Company: Amwrigas
In nov last yr we had 150 gal supposedly put in my mothers tank we'd just got some 1 1/2 mon before just made last payment they came back out 150 more had nt had chance to even make 1 at payment and it was empty they put in another150 I ask why she was out so soon the excuse was a leak she had no leak we checked every thing the bill then was over $ 600. She ran out again in two wks they wouldn't bring anymore my mother only gets 700. Amonth to by groc and pay bills we had to get assistance to pay that bill because I mself employed and live 200 miles away they were hateful and rude when I ask them to have Gage's checked on truch because I knew she couldn't use that much living alone they told me I could no longer have service with them
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Price of Propane Gas
Amount: $2.19
Posted by: a user in Flemington, NJ.Posted: November 13th, 2014 11:11AM
Company: Amerigas
I'm on a great save lock-in rate through June 2015 @ $2.19/gal. This is up from last yr's great save rate of $2.09 that locked me in from 9/2013-3/2014. (Don't know why they change the end dates.) And that was up from a great save rate of $1.99/gal in the Fall 2012/Spring 2013 program.
I don't know what the current market is for Propane and this website is helpful to understand what others are paying.
I actually thought I might be paying a lot considering how cheap energy is getting although NatGas hasn't dropped that dramatically. Propane is a by-product of the extraction process for oil and gas so i thought it might be cheaper.
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how much to fill my tank
Amount: $400.00
Posted by: dawn1059 in jackson, OH.Posted: November 2nd, 2014 11:11AM
Company: arricks
I have 25 precent my tank is 500 gallon how much would it cost to fill my tank
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New hampshire sea coast
Amount: $2.94
Posted by: livefreeordie in Noth Hampton, NH.Posted: November 1st, 2014 03:11PM
Company: Proulx
Fixed price as of 11/1/14 is 2.94 a gallon.
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LP Gas prices for contract pre pay
Amount: $2,100.00
Posted by: Tom Ambrosia in Benton, PA.Posted: October 24th, 2014 02:10PM
Company: Hellers Gas Bloomsburg PA
10 24 14
Have used this firm since 2000. Great Service, Paul Heller a really nice guy (president), Chris, John and the team very personable and helpful.
The price right now is $2.29-$2.69 per gal for pre pay. Looks like it could go down to 2.19 in next 7-14 days. They own the tanks and its lease cost is in the gal price which I would rather do than try and buy my own tank and worry and maintain it. Anything goes wrong they are right there to help me. They installed 3, 30K btu fireplaces which with electric heat pump, those fireplaces have kept us nice and warm. Now with a new York Hybrid heat pump installed by JNK Turbotville PA the LP Gas will kick in when the air temp is at 30 or below. I have used it since it was installed Feb 19 and I have seen a dramatic electric cost to my home heating bill.
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end to the story
Amount: $998.79
Posted by: Delliah in stanhope, NJ.Posted: October 21st, 2014 07:10PM
Company: surburban
So end of th story. They said well if u said u didn't get it then we have to believe u!! Oh really After they say their trucks r never wrong oh n did I tell u I have surveillance cameras on my house and there was no del truck n my driveway n u c th del guy not his face w his hat on.putting what I thought was a flyer or whatev. But my neighbor did get a delivery. Ps. I have a 1000gal tank n my neighbor only a 500 an how convenient th chg was 4 400gal!!! DOES ANYONE KNOW AN HONEST CO PLEASE POST!!! THX!!!
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tried to chg me 4 propane not receieved not!!!
Amount: $998.79
Posted by: Delliah in stanhope, NJ.Posted: October 21st, 2014 06:10PM
Company: surburban
I was n my house as I was leaving I saw something hanging fr my front door! I waited till I got back it was a bill fr suburban. First I was pissed by they are only sup 2 come if I call or they will nickel n dime u n keep coming so they can chg u a 21.94 del chg! Really!! Thieves!! So I ran n called them cust ser man asked for my account no. At th same time we both realized it was my neighbors acct and acct num. Now I check my tank no bs daily!! As I was my pups. So I ran out n looked I did not receive any propane!! They said th truck is nev wrong oh really then y was th acct num n name not mine!!! I fought them on this for a yr bc. I told them I didnt call you to del so technically they were trespassing n by rights I didn't have 2 pay. This I said after an hr of them telling me I got a delivery.. after me trying to reason w them I had to get nasty ... Finally they said after almost 1-1/2 yrs of a bak n forth bs they said they were taking it off this is what they said "if u say u di
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Amount: $200.76
Posted by: LINDA K TREAT in KISSIMMEE, FL.Posted: October 4th, 2014 10:10AM
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1st fill
Amount: $1.90
Posted by: Bluespicker in Beaver Dams, NY.Posted: September 19th, 2014 10:09AM
Company: Suburban
Just did a 400 gal fill at $1.899 which I didn't think was too bad considering some of the other prices I've heard about. This is my first house that has used propane and I am real nervous about costs.
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Propane costs 2014-2015
Amount: $1.80
Posted by: Pete M in Sharpsville, PA.Posted: September 8th, 2014 10:09PM
Company: Ferrell Gas
Preordered 1500 gal for this winter. Pay as it is delivered. Price guaranteed to March 31, 2015. If don't use all it just goes away.
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cost of gas
Amount: $6.19
Posted by: Sissy in Tampa, FL.Posted: July 23rd, 2014 05:07AM
Company: suburban
Unwanted shipment, they topped off our tank.
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Outrageous Propane Prices
Amount: $450.00
Posted by: John M. in Anchor Point, AK.Posted: July 21st, 2014 07:07PM
Company: Suburban Propane
Last time I checked Propane is a by-product of natural gas processing. Why the hell is it $5.76/gal!! I'm so fed up with the excuses I get on why it cost so much, complete BS!
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Amount: $3.95
Posted by: jabbo in Dalzell, SC.Posted: June 22nd, 2014 12:06PM
Company: suburban
outrageous ripoof
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Just quoted $2.49/gal in Middle Tennessee
Amount: $2.49
Posted by: Rural Customer in Santa Fe, TN.Posted: May 15th, 2014 01:05PM
Company: Chiles Propane
They said they were "hoping" it would get back to the $2.19 range, but no sign of that yet.
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bill for gas we didnt receive nor ordered
Amount: $194.00
Posted by: Allena Bothwell in Prestod, ID.Posted: May 6th, 2014 10:05PM
Company: valleywide co-Op
valley wide co op billed us for gas we didnt not receive nor did we order then therten to take our tank, if you do don paay this bogess bill, have senior, young childern and handicapp in home, they dont care, they just want thier money, never, order from them, they will rip you off and charge you for fuel you never received
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